News:
Tuesday, the market surged higher after the latest Producer Price Index (PPI) showed inflation rose just 0.2% month over month and 8.0% year over year.
Economists projected 0.4% and 8.4%, respectively.
While the market didn’t hold on to all its gains, the close was clearly a win for the bulls.
- Dow Jones +0.2%
- Nasdaq +1.4%
- S&P 500 +0.9%
- Russell 2000 +1.5%
Sector Round Up
9 of 11 sectors ended the day higher. At the top…
- Communication (XLC) +1.5%
- Consumer Discretionary (XLY) +1.4%
- Real Estate (XLRE) -2.7%
The losers…
- Materials (XLB) -0.2%
- Healthcare (XLV) -0.1%
NATO Attacked
According to numerous reports, missiles landed in Poland and killed at least two people yesterday.
The news jolted the markets, but much of the initial losses were recovered by the close
- Poland is a NATO member, and article 5 states ‘an attack on one is an attack on all.’
Overnight, Reuters reported that the missiles likely came from a Ukrainian air defense system. Russia is off the hook for now.
Technicals:
On Friday, the Put-to-call Ratio reached its lowest level since the markets reached all-time highs in January. The uncertainty surrounding the Ukraine war and yet-to-be-finalized elections barely budged the signal higher.
This tells us that bears aren’t making bearish bets. So, the bulls are in charge, and we believe every dip is a buying opportunity.
Our outlook remains bullish.
- The VIX closed below 25 despite an intraday surge … that’s bullish.
- RSI levels are all neutral
- The Put-to-Call Ratio is neutral, with a bullish tilt.
Timing:
A slew of data is due out today…
- Business inventories
- Housing market index
- Import/Export prices
- Industrial production
- Retail sales
While we are not anticipating any major market moves off these reports, it’s worth keeping an ear to the ground as the data flows out.
Watchlist:
*Low Float
^Open Position
*KLXE support at $16
*NINE on watch
PDSB on watch
CABA support at $2.5
FDMT on watch
IMMR support at $6.25
AVDL resistance at $8
^IMVT support at $13
TUSK support at $6
WNC resistance at $25
ELF resistance at $52
GLYC on watch
PCVX resistance at $45
MGNX support at $6.50
^CROX support at $80/85
^RYAM support at $7
VIST support at $14
AVXL support at $14
EYE support at $38
PRVB on watch
OII support at $14
IGT support at $24
SFM resistance at $34
MGNI support at $10, resistance at $12
ADMA support at $2.85
VVNT on watch
MNSO support at $10
TME support at $5
GILD support at $80